Beruflich Dokumente
Kultur Dokumente
Exit or Remain
de Celis Arias Marta │ Díaz Mena Kem Jian │ Pfister René │ Santamaría Rigg María Isabel
OVERVIEW QUESTIONS
Sunton Manufacturing
1 2
What motivated Tony Wu to set up a How has Sunton’s investment
factory in Cambodia? As an advisor to performed in Cambodia? Was the
the company, where would you have timing of Sunton’s investment in
suggested Sunton to go? Cambodia too soon, too late, or just
right?
2
MOTIVATION CAMBODIA
1
Sunton Manufacturing
Lack of research
Sunton’s investment
did not perform well
5
TIMING OF SUNTON’S INVESTMENT
2
Sunton Manufacturing
He arrived in Cambodia
without knowing the proper Quality of work ethic and laws
Too soon! information
Join Venture
1
in Cambodia
Exports UE
4
2
Foreign direct Potential further
Subsidiary in Italy scenario: Acquisition
investment or Merge
7
OTHER OPTIONS BESIDES CAMBODIA
3 Sunton Manufacturing
Europe Clothing Industry Import Participation 2018, by country Total value of clothing imports by the United States from 2011 to 2019 (in
million U.S. dollars)
Others (15 countries)
9%
100'000
Czech Republic
2% Portugal
2%
97'500 97'000
Sweden Germany
3% 22%
Denmark 95'000
3% 95'000
93'164
Austria 92'500 92'000
4%
91'028 91'000
Poland
5% 90'000
France 88'584
Belgium 14% 87'957 88'000
5% 87'500
Italy
10% 85'000
Spain
11%
Netherlands
10% 82'500
2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Statista 8
4 ASSESS SUNTON’S PARTNER SELECTION PROCESS.
When?
Partner selection
Why? How?
process
Who?
9
4 PARTNER SELECTION PROCESS
Friend’s
recommendation
Recruitment calls and due diligence
Government's effectivenes
Ease of doing business
The "white issue" is
Control of corruption
0 = less important
Market openness
Electricity Prices
1 = equally important
Political stability
Corporate Tax
Currency Risk
Property Cost
2 = more important
Labor Skills
Legislation
Labor Cost
than the "grey" issue
1 2 3 4 5 6 7 8 9 10 11 12
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APPENDIX 2
Systematic Comparison (2/3)
China Cambodia Vietnam Lao PDR Thailand Myanmar Malaysia Indonesia Philippines
Ease of doing business (rank) 78 131 82 139 46 170 23 91 99
1 Ease of doing business (points) 64.28 54.79 63.83 53.29 72.53 44.56 78.11 61.52 60.4
Strategic Comparison 6.29 3.74 6.17 3.34 8.50 1.00 10.00 5.55 5.25
Market openness (%) 53.09 48.85 47.42 41.87 51.33 43.73 51.83 50.26 44.31
2
Strategic Comparison 10.00 6.60 5.45 1.00 8.59 2.49 8.99 7.73 2.96
Control of corruption 49 8 42 15 41 31 62 43 34
3
Strategic Comparison 7.83 1.00 6.67 2.17 6.50 4.83 10.00 6.83 5.33
Government’s effectiveness 68 25 53 39 66 16 76 53 52
4
Strategic Comparison 8.80 2.35 6.55 4.45 8.50 1.00 10.00 6.55 6.40
Political stability 27 52 51 62 16 23 50 33 10
5
Strategic Comparison 3.94 8.27 8.10 10.00 2.04 3.25 7.92 4.98 1.00
Legislation 46 13 57 24 55 17 71 39 37
6
Strategic Comparison 6.12 1.00 7.83 2.71 7.52 1.62 10.00 5.03 4.72
Labor Cost (USD per month, manufacturing) 491 96 182 102 227 n.a. 422 122 208
7
Strategic Comparison 1.00 10.00 8.04 9.86 7.02 1.00 2.57 9.41 7.45
Property Cost (Price per sqm) 11829 2913 2280 n.a. 5266 n.a. 6450 2595 3952
8
Strategic Comparison 1.00 8.40 9.00 1.00 7.19 1.00 6.07 9.70 8.42
Corporate Tax 0.25 0.2 0.2 0.24 0.2 0.25 0.25 0.25 0.3
9
Strategic Comparison 5.50 10.00 10.00 6.40 10.00 5.50 5.50 5.50 1.00
Labor Skills (Global Competitiveness Report) 4.83 4.01 4.11 4 4.52 n.a. 5.06 4.74 4.35
10
Strategic Comparison 8.05 1.08 1.93 1.00 5.42 1.00 10.00 7.28 3.97
Currency Risk (Transfer Risk, Currency Inconvertability) 2 1 4 6 3 6 3 3 3
11
Strategic Comparison 8.20 10.00 4.60 1.00 6.40 1.00 6.40 6.40 6.40
Electricity Prices 0.08 0.15 0.08 0.06 0.13 0.05 0.06 0.1 0.18
12
Strategic Comparison 7.92 3.08 7.92 9.31 4.46 10.00 9.31 6.54 1.00
13
APPENDIX 3
Systematic Comparison (3/3)
Decision Matrix
Country selection
Goal s: China Cambodia Vietnam Lao PDR Thailand Myanmar Malaysia Indonesia Philippines
W V VxW V VxW V VxW V VxW V VxW V VxW V VxW V VxW V VxW
1. Ease of doing business 7 6 44.0 4 26.2 6 43.2 3 23.4 9 59.5 1 7.0 10 70.0 6 38.8 5 36.7
2. Market openness 4 10 40.0 7 26.4 5 21.8 1 4.0 9 34.4 2 10.0 9 36.0 8 30.9 3 11.8
3. Control of corruption 3 8 23.5 1 3.0 7 20.0 2 6.5 7 19.5 5 14.5 10 30.0 7 20.5 5 16.0
4. Government's effectivenes 3 9 26.4 2 7.1 7 19.7 4 13.4 9 25.5 1 3.0 10 30.0 7 19.7 6 19.2
5. Political stability 6 4 23.7 8 49.6 8 48.6 10 60.0 2 12.2 3 19.5 8 47.5 5 29.9 1 6.0
6. Legislation 7 6 42.8 1 7.0 8 54.8 3 18.9 8 52.6 2 11.3 10 70.0 5 35.2 5 33.1
7. Labor Cost 21 1 21.0 10 210.0 8 168.9 10 207.1 7 147.3 1 21.0 3 54.0 9 197.6 7 156.4
8. Property Cost 15 1 15.0 8 126.1 9 135.0 1 15.0 7 107.8 1 15.0 6 91.0 10 145.5 8 126.4
9. Corporate Tax 18 6 99.0 10 180.0 10 180.0 6 115.2 10 180.0 6 99.0 6 99.0 6 99.0 1 18.0
10. Labor Skills 19 8 152.9 1 20.6 2 36.7 1 19.0 5 102.9 1 19.0 10 190.0 7 138.4 4 75.5
11. Currency Risk 16 8 131.2 10 160.0 5 73.6 1 16.0 6 102.4 1 16.0 6 102.4 6 102.4 6 102.4
12. Electricity Prices 13 8 103.0 3 40.0 8 103.0 9 121.0 4 58.0 10 130.0 9 121.0 7 85.0 1 13.0
Sum: 75 722. 5 66 855. 9 82 905. 2 52 619. 5 82 902. 1 34 365. 3 97 941. 0 82 942. 9 54 614. 5
W = Weighting
V = Value Value 10 points maximum
14
SOURCES
Sunton Manufacturing
15